4 Gilbert St

Livermore Falls, ME 04254

$116,000C

2 bd · 1.0 ba · 784 sqft · Built 2008 · MultiFamily · Pending · 68 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $971/mo
• Mortgage (P&I): −$608
• Tax + insurance: −$221
• HOA: −$0
• Vac / Maint / Mgmt: −$204
• Net cashflow: $-62/mo
• Annual: $-748/yr
• Cap rate: 6.22%
• Cash-on-cash: -0.25%
• DSCR: 0.99
• 1% rule: 0.84%
• Cash to close: $32,480

Investor read

• This is a 2-bed/1.0-bath multifamily listed at $116k.
• At list price, monthly cash flow is $-62 ($-748/yr) — negative.
• To cash-flow at today's rent, offer at most $105k (9.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $97k (16.3% below list).
• It's been on market 68 days — a 6% lower offer ($109k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $97k (16.3% below list) — sets the bar for 1% rule.
• In year one you build about $5k of equity ($802 loan paydown + $4k appreciation (3.9% local appreciation)).
• Location reads 67/100 on livability (#95 in ME) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, health & safety A+; Watch: amenities F, commute F, employment F.
• RSU 73 (rural): math 75% / reading 81% proficiency, ranked #91 of 112 in ME (top 81%) — strong family-tenant draw, lease renewals of 3-5y typical.
• Zoned schools: Spruce Mountain Middle School (math 83% / reading 83%, grade A+, #47 of 85 statewide, top 58%, 358 students, 58% FRL); Spruce Mountain High School (math 84% / reading 95%, grade A+, #49 of 108 statewide, top 50%, 408 students, 43% FRL) — zoned schools at 51% FRL track the district average.
• Watch-outs: flood insurance adds $56/mo.
• Market conditions: 34 active listings in the ZIP; 358 units permitted in Androscoggin County in 2024 (57 in 5+ unit buildings).
• Androscoggin County population projected at -19% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (3.9% appreciation + 3.0% rent growth), your $32k cash investment doubles in ~6 years — after that, you're playing with house money.
• By year 7, paydown + projected appreciation supports a ~$33k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: severe flood risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.2% vs local median 2.9% in Livermore Falls — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• It's been on market 68 days. Have you received any prior offers? Is the seller open to a 16% concession, seller financing, or rate buy-down credit?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.
• What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.